Reconstitution of a Partnership Firm – Admission of a Partner · Class 12 · CBSE · Commerce Accountancy
At the time of admission of a new partner, how is the unrecorded asset usually treated in the books of the firm?
Practice question from Reconstitution of a Partnership Firm – Admission of a Partner (Class 12 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
medium · MCQ · Q-277460
At the time of admission of a new partner, how is the unrecorded asset usually treated in the books of the firm?
- A.Credited to Revaluation AccountCorrect answer
- B.Debited to Revaluation Account
- C.Credited to Old Partners' Capital Accounts
- D.Debited to New Partner's Capital Account
Solution
An unrecorded asset represents a gain for the firm upon its discovery at admission. Therefore, the Revaluation Account is credited, and the asset account is debited.
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